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To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1540-5885.2010.00733.x Byline: Namwoon Kim (1), Kwaku Atuahene-Gima (2) Abstract: While the need for research on the market-learning efforts of a firm in relation to its new product development is continuously emphasized, the empirical results on this issue reported so far have been mixed. The current study contends that the inconclusive nature of the empirical evidence is mostly due to the existence of different dimensions of organizational market learning-exploratory and exploitative-and to possible different routes by which these learning dimensions are linked to new product performance. More specifically, this study argues that exploratory market learning contributes to the differentiation of the new product because it involves the firm's learning about uncertain and new opportunities through the acquisition of knowledge distant from existing organizational skills and experiences. By contrast, this study posits that exploitative market learning enhances cost efficiency in developing new products as it aims to best use the currently available market information that is closely related to existing organizational experience. This study provides empirical support for this two-dimensional scheme of organizational market learning and its consequent effects on two components of new product advantage: new product differentiation and cost efficiency. Further, given that the effectiveness of firms' strategic efforts is contingent upon the nature of the market environment, the current study examines the moderating effects of environmental dynamism and market competitiveness for this market learning-new product advantage relationship. This study is based on survey data from 157 manufacturing firms in China that encompass various industries. The empirical findings support the two-dimensional market learning efforts that increase new product differentiation and cost efficiency, respectively. The study confirms that exploratory market learning becomes more effective under a turbulent market environment and that exploitative market learning is more contributive when competitive intensity is high. It also suggests that because of their differential direct and moderating effects on new product advantage either exploratory or exploitative market learning may not be used exclusively, but the two should be implemented in parallel. Such learning implementations will help to secure both the feature and cost-based new product advantage components and will consequently lead to the new product success. The current study attempts to contribute to greater clarity and better understanding of how market learning influences new product success as it theoretically identifies and empirically validates the two forms of new product advantage as the conceptual mediator between market learning and new product performance. Author Affiliation: (1)Hong Kong Polytechnic University (2)China Europe International Business School (CEIBS) Article note: Address correspondence to: Namwoon Kim, Department of Management and Marketing, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong. Tel.: (852) 2766-7141. Fax: (852) 2765-0611. E-mail: msnam@polyu.edu.hk.

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.indmarman.2005.05.017 Byline: Kwaku Atuahene-Gima (a), Haiyang Li (b), Luigi M. De Luca (c) Keywords: Marketing strategy; Strategy innovativeness; Strategic decision-making; New ventures; Product development; Performance; China Abstract: This study extends research on entrepreneurial behavior by investigating the relationship between the marketing strategy innovativeness (MSI) and new product performance in technology-based new ventures in China. Specifically, premised on contingent resource-based view we argue that MSI is a firm capability that must be bundled with external managerial relationships and be deployed in the appropriate environment to ensure its success. We found that the team's extra industry relationships and market dynamism enhanced the impact of MSI on new product performance. In contrast, top management team's intraindustry relationships, financial relationships, and technology dynamism hindered the impact of MSI on new product performance. Author Affiliation: (a) China Europe International Business School (CEIBS), 699 Hongfeng Road, Pudong, Shanghai 201206, Peoples' Republic of China (b) Jesse H. Jones Graduate School of Management, Rice University Houston, Texas 77005, United States (c) Management Department, Bocconi University, Viale Filippetti, 9 20122 Milan, Italy Article History: Received 10 September 2004; Revised 13 May 2005; Accepted 30 May 2005